Palo Alto Networks Stock Plunges 28% on Slowing Growth and Reduced Guidance Despite Long-Term Potential
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Palo Alto Networks' stock price plunged 28% due to slowing revenue growth and reduced full-year guidance.
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The bear case focuses on decelerating billings and revenue growth, high valuations, and insider selling.
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The bull case sees the revenue slowdown as temporary due to a strategic shift towards a unified platform.
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Palo Alto expects strong long-term growth, with $15B in annual recurring next-gen security revenue by 2030.
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The author is keeping some PANW shares as a long-term play on cybersecurity, but bears could remain in charge short-term.